Correlation Between Beijing Wantai and Jiangsu Xinri
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Wantai Biological and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Beijing Wantai and Jiangsu Xinri and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Beijing Wantai with a short position of Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Jiangsu Xinri.
Diversification Opportunities for Beijing Wantai and Jiangsu Xinri
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Jiangsu is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E and Beijing Wantai is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Beijing Wantai Biological are associated (or correlated) with Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Beijing Wantai i.e., Beijing Wantai and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Beijing Wantai and Jiangsu Xinri
Assuming the 90 days trading horizon Beijing Wantai is expected to generate 3.44 times less return on investment than Jiangsu Xinri. But when comparing it to its historical volatility, Beijing Wantai Biological is 1.17 times less risky than Jiangsu Xinri. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,048 in Jiangsu Xinri E Vehicle on September 3, 2024 and sell it today you would earn a total of 57.00 from holding Jiangsu Xinri E Vehicle or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wantai Biological vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Beijing Wantai Biological |
| Jiangsu Xinri E |
Beijing Wantai and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and Jiangsu Xinri
The main advantage of trading using opposite Beijing Wantai and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai position performs unexpectedly, Jiangsu Xinri can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Beijing Wantai vs. Cofoe Medical Technology | Beijing Wantai vs. Guangzhou Boji Medical | Beijing Wantai vs. Qingdao Baheal Medical | Beijing Wantai vs. Double Medical Technology |
| Jiangsu Xinri vs. PetroChina Co Ltd | Jiangsu Xinri vs. China Mobile Limited | Jiangsu Xinri vs. Industrial and Commercial | Jiangsu Xinri vs. China Life Insurance |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |